Target shares took a hit, tumbling 8.7% after the retailer reported lower-than-expected profits for the latest quarter. The company also provided forecasted ranges for upcoming profit that fell below analysts’ estimates, citing customers holding back on purchases of non-essentials. In an effort to attract customers grappling with high inflation, Target announced price cuts on thousands of everyday basics earlier this week.
Lululemon Athletica also saw a decline, with shares sinking 7.3% as the company’s chief product officer, Sun Choe, announced her departure to pursue another opportunity. The company revealed a new organizational structure that will not include a replacement for the role of chief product officer.
On the flip side, Petco Health & Wellness experienced a 27.3% leap in its stock after reporting better-than-expected results and revenue for the latest quarter.
TJX, the off-price retailer known for brands like TJ Maxx and Marshalls, saw a 6.2% increase in its stock after surpassing profit expectations and raising its forecast for earnings per share for the full year. The company attributed its success to competitive pricing that is attracting customers.
Looking ahead, analysts are eagerly awaiting Nvidia’s latest quarterly report, expected after the market closes. The tech giant is anticipated to deliver strong growth fueled by high demand for chips used in artificial intelligence technology, solidifying its position as one of the most influential stocks on Wall Street.
In the bond market, Treasury yields were on the rise ahead of the release of the Federal Reserve’s meeting minutes. Recent reports indicating softening inflation and economic indicators have sparked hopes for a potential interest rate cut by the Fed later this year.
Central banks globally are considering rate cuts, but according to Bank of America strategist Athanasios Vamvakidis, any cuts may be shallow and delayed compared to market expectations due to strong economic performance and lingering inflation concerns.
Stock markets abroad saw modest declines, with European and Asian indexes slipping. London’s FTSE 100 dropped 0.6% following a stronger-than-expected inflation reading in the UK, dampening hopes for a rate cut in June. Tokyo’s Nikkei 225 fell 0.8% after Japan reported a rise in its trade deficit.
Overall, the market remains cautious as investors await further economic data and central bank decisions to navigate the delicate balance between controlling inflation and avoiding a recession.
